Investing Ideas

Income isn't the only reason to own bonds

Bonds may also offer a useful and inexpensive hedge in a rising equity market.

By: Nils Bierkamp Jonathan Cain Brian Donnelly David Hays
Updated: 12/5/2024
Key Takeaways
  • Bonds have outperformed cash in past rate-cutting cycles, on average
  • Unlike cash, bonds may provide positive optionality and a cheap hedge in the case of equity market volatility
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Income isn't the only reason to own bonds
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